3 important changes in ITR forms for salaried taxpayers for AY 2016-17June 3, 2016
Now Use ATM to e-Verify your Tax ReturnJune 9, 2016
Its appraisal time and all that hard work done for a year is in front of you. And..the good news is here, you get that much awaited hike in salary. However have you thought about the tax implications? Probably not, you realise it only when you get a pay cheque of a lesser amount than what you expected.
We give you 4 things to watch out for when you get a big fat raise in the salary.
- Increased salary means extra taxes: With an increase in salary you enter higher tax slabs and hence there is an increased tax deduction. Hence a deeper hole in the pocket in form of taxes.
- Bonus also has a tax implication: We need to understand that even if the salary hike is not much and if you are paid an yearly fat bonus it adds to the total earning for the year and this leads to you being in higher tax slabs and hence taxes increase.
- Invest so that you save tax: More taxes with increased salary are inevitable but you can reduce these taxes if you invest wisely enough in tax savings instruments. Contact your tax advisor today for this.
- Re-structure your salary: In case you are eligible for some perks as a part of high salary then contact your HR department to make sure that you plan your salary in a manner that you maximize your tax exemptions.
So congratulations on that salary hike but please be sure that you don’t lose out on it and plan some good tax savings.